For Anchorage, AK residents who are looking to diversify their investment portfolio, putting their money into commercial real estate can be a risky proposition. This is because unlike residential properties, managing commercial ones can get a lot more complicated. With an apartment, you’ll only have to worry about the tenant’s experience. A strip mall or a warehouse brings into the equation things like accessibility and power concerns. That’s where property management experts like Graham Commercial Real Estate can come in to provide some help.
Why Own Commercial Real Estate?
The main question that has to be answered first is the reason why would you want to buy commercial real estate. There are several excellent reasons for doing so. For one thing, commercial properties are a stable long-term investment. Unlike some people who’d want to flip a house or property quickly, you aren’t concerned about the dips and rises of property prices. Your aim with commercial real estate is to get the rents; as an owner of a commercial or office building, you’ll have a lot of tenants that would be earning a lot of money. Getting a piece of the pie by charging reasonable rents should be easy.
Another reason why you’d want commercial real estate is that you can get more bang for your buck. For example, buying available warehouses for sale can set you back quite a lot of money. However, once you own them, maintaining them is actually inexpensive. Large commercial properties like that don’t need that much TLC like residential ones; no one lives in them, after all.
Finally, your property ownership can help with your taxes. In the past, commercial real estate was the prime tax shelter for many professionals. Though that has changed since the 1986 tax reform, there are still ways to use real estate to stop paying taxes. For example, a 1031 exchange can defer your capital gains tax if done properly.
Leave It to the Managing Pros
Getting the most out of your property requires proper management, though. Attempting to manage it yourself can be difficult depending on the circumstances: you may have your own job or you have multiple properties to manage. If so, then getting a property manager to do the heavy lifting for you is often the best choice. Having a meticulous and skilled property manager can ensure that you have the ideal tenants and that they pay their rents on time. You can also be assured of the property staying in good condition. With these benefits, hiring a property manager should be an easy decision to make.
Tax Advantages of a Property Management Company, Houston Chronicle
Career Profile: Commercial Property Manager, OnlineCollege.org
Buying Main Street: Time To Add Commercial Real Estate To Your Portfolio?, Forbes